Preparing an income statement - Coyote, Inc.

3.10. Prepare a multiple-step income statement for Coyote, Inc. from the following single-step
statement. Then write a 200-300 word summary discussing the implications of profitability and net income of the company.

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(Accounting coach, 2009)The multiple-step profit and loss statement segregates the operating revenues and operating expenses from the nonoperating revenues, nonoperating expenses, gains, and losses. The multiple-step income statement also shows the gross profit (net sales minus the cost of goods sold). Multiple income statement shows the gross profit, operating profits and net earnings of the business. There are three benefits ...